Bondsmith, the UK’s cash savings fintech, is pleased to announce the launch of the country’s FSCS-insured bank deposit sweep, bringing cash management solution to British savers.
Claiming to be motivated or “inspired” by the FDIC sweep programs in the United States, Bondsmith’s new offering “enhances deposit protection while optimising returns for individuals, businesses, and wealth managers.”
The Bondsmith Deposit Sweep reportedly allows customers to “spread their cash across multiple partner banks, ensuring that deposits remain fully covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per institution.”
By automatically distributing funds, the solution provides “higher levels of protection” than a single bank account, “without customers needing to manage multiple banking relationships themselves.”
While FDIC-insured sweeps have long been a staple in the US for optimising cash security, Bondsmith is the first “to bring this concept to the UK under FSCS rules.”
This solution allows UK customers to benefit from institutional-grade cash management, helping them “mitigate risk, increase protection, and simplify their financial holdings.”
Michael Doyle, CEO of Bondsmith, commented:
“The UK’s cash savings market is long overdue for innovation. Our FSCS Deposit Sweep brings institutional cash management strategies to retail savers, businesses, and wealth managers alike. We’re making it easier than ever to protect and optimise cash holdings in a fragmented banking landscape.”
As noted in a blog post by Bondsmith, here’s how it works:
- Customers deposit funds with Bondsmith’s sweep platform.
- The system automatically allocates cash across deposit accounts participating in the sweep program.
- Each deposit remains within FSCS protection limits at an individual customer level, ensuring security and peace of mind.
- Customers retain instant access to their funds, with consolidated reporting and easy management.
At launch there are 3 banks participating in the sweep, which means this one account provides “up to £255,000 (£85,000 x3) of FSCS protection per customer.”
With the Bank of England’s interest rate environment making cash an increasingly attractive asset, Bondsmith’s FSCS Sweep provides “a secure, scalable, and efficient alternative to traditional savings accounts.”
The launch represents another step in Bondsmith’s mission “to deliver cash solutions that empower customers with greater choice and flexibility.”